[News] Goldman Sachs: TSMC to Win Big with Intel’s Increased Outsourcing

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According to a report by Taiwan’s Commercial Times, Goldman Sachs Securities has noted that Intel has been consistently grappling with process upgrade delays since the 10-nanometer fabrication process. Recently, the company has decided to establish a foundry-like relationship between its manufacturing groups and
internal product business units. With the market scale growing increasingly substantial, it is anticipated that Intel will expand its outsourcing to TSMC in 2024 and 2025. In the rising trend of outsourced manufacturing, TSMC stands as the major beneficiary.

Goldman Sachs’ analysis reveals that the total addressable market of Intel’s outsourcing orders for 2024 and 2025 is set at $18.6 billion and $19.4 billion, respectively. During the same period, the total addressable market scope for TSMC’s wafer fabrication services amounts to $5.6 billion and $9.7 billion, approximately accounting for 6.4% and 9.4% of TSMC’s overall revenue in the corresponding years.

Prominent semiconductor industry analyst Andrew Lu also explains that Intel’s wafer chip manufacturing division competes with TSMC, rather than its design division. The design division is striving for survival in the high-speed computing semiconductor sector, and it is currently hopeful for close collaboration with TSMC. Lu even predicts that Intel’s wafer manufacturing and design divisions will inevitably be further separated into two companies several years down the line.